Monarch's production capacity is expected to expand to nearly 4 million tons per year by first-quarter 2023. (Source: Shutterstock.com)
ProFrac Holding Corp. has entered into a definitive agreement to acquire the Eagle Ford sand mining operations of Monarch Silica LLC, the company said on Dec. 5.
The transaction, financial details of which were not disclosed, is expected to close by the end of 2022.
Monarch's production capacity is expected to expand to nearly 4 million tons per year by first-quarter 2023, positioning ProFrac to bundle internally sourced proppant across its active fleets in the region, the company said.
Monarch Silica opened in 2019 and produces “high-quality silica sand for the Eagle Ford oil and gas industry,” according to the company’s website. Monarch’s redundant production loop provides certainty of supply for customers, providing assurance that products are available as needed. Monarch’s proximity to Eagle Ford acreage allows customers to capture cost savings and boost returns on hydrocarbon production, the company said.
ProFrac executive chairman Matt Wilks said the company will add the Monarch mine to a growing portfolio of in-basin sand mines it operates through Alpine Silica.
“This transaction further demonstrates ProFrac's commitment to its vertical integration strategy, providing the company with access to high-quality, local proppant in the Eagle Ford, where we currently operate eight active fleets,” Wilks said.
Winston & Strawn is acting as ProFrac's legal counsel on the transaction. Piper Sandler & Co. served as exclusive financial adviser to Monarch, and Chamberlain, Hrdlicka, White, Williams & Aughtry, P.C. is serving as Monarch's legal counsel.
ProFrac Holding Corp. is a vertically integrated services company founded in 2016 providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.
Monarch Silica is part of the Welch Family Mining Company, which has been mining sand in Texas for over the last 40 years.
Recommended Reading
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Freshly Public New Era Touts Net-Zero NatGas Permian Data Centers
2024-12-11 - New Era Helium and Sharon AI have signed a letter of intent for a joint venture to develop and operate a 250-megawatt data center in the Permian Basin.
Blackstone Buys NatGas Plant in ‘Data Center Valley’ for $1B
2025-01-24 - Ares Management’s Potomac Energy Center, sited in Virginia near more than 130 data centers, is expected to see “significant further growth,” Blackstone Energy Transition Partners said.
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.